Exxon Says Red Tape Sparked
Suspension of Russian Drilling

MOSCOW -- Exxon Corp., one of the few major Western oil companies that was actively exploring in Russia, has suspended drilling amid an environmental and legal dispute with the government.

The Irving, Texas, company said in a statement that it canceled its drilling activities after the State Ecological Committee failed to endorse Exxon's drilling plan for an oil well at its $15 billion Sakhalin project in the Russian Far East.